What is uninsured motorist coverage, and why do I need it?

While a lot of financial institutions will require auto insurance when purchasing or leasing a vehicle, on top of the fact that it’s required by state law, you should look at it as much more than just a requirement. It’s an investment in protection; something that delivers peace of mind that you’ll be covered even in the event of something unexpected happening. But just because you have insurance, and just because a lot of places require it, doesn’t necessarily mean everyone out there on the road has it as well.

 

This can ultimately leave you vulnerable if you end up in certain situations, which is where uninsured motorist coverage comes into play. Here at Glover Family Independent Insurance, we want to make sure you know of all your options and have coverage for as much as you want. This is precisely why we’re going to dive into the details of this often overlooked type of coverage, to help you decide if it’s an essential part of your comprehensive policy.

The name can be a bit misleading at first glance. “I’m an insured motorist, obviously, so why would I need uninsured motorist coverage?” Well, this type of coverage actually protects you financially if you happen to be involved in an accident with a diver who doesn’t have auto insurance. That’s where the name comes into play, as it can cover medical expenses, lost wages and other costs related to injuries sustained in the accident that would typically be covered by the other party’s insurance. There are two different types of coverage:

• Uninsured Motorist Bodily Injury (UMBI)
  • This type of coverage is for those aforementioned injury-related expenses as well as any additional pain and suffering.
• Uninsured Motorist Property Damage (UMPD)
  • This type of coverage, on the other hand, is for any damage to your vehicle and other personal property.

As we already illuminated, there is a common misconception that all drivers out there on the roads are insured, but this is, unfortunately, not the case. According to experts, there are literally millions of motorists on American roadways without the protection that is required by law. If one of them causes an accident, you could be left shouldering the costs that your own insurance expects the other party to cover. It’s a sad reality, but something you should definitely keep in mind, and the chief reason you should highly consider uninsured motorist coverage. Here are a few additional reasons:

1. Protection against financial loss
2. Coverage for hit-and-run accidents
3. Fills the gap left by underinsured motorists
4. Medical costs can be overwhelming

The best way for us to explain how uninsured motorist coverage works is with an example that should perfectly illustrate it. Imagine yourself driving through town, you see a green light and proceed through the intersection like normal, only for a car crossing the other direction to run the red light and collide right into you. The driver not only stops but actually admits fault, but also happens to inform you that they have no auto insurance. In this situation, if you don’t have uninsured motorist coverage of some kind, you’d be paying for vehicle repairs out of your own pocket and relying on your health insurance and personal savings to take care of any medical expenses.

 

On the other hand, looking at this same situation, if you have both UMBI and UMPD, all of your medical expenses and repair costs will be taken care of by your uninsured motorist coverage — up to the limits that you selected when purchasing the coverage. As you can see, you’re now covered even in situations where you aren’t at fault.